After the Drive Extender (DE) fiasco with Windows Home Server “Vail” (now Windows Home Server 2011) I was not overly interested in installing the WHS 2011 Release Candidate (RC). However I decided to install it in a virtual machine today to begin looking at DE replacements.
In ESXi when you create the virtual machine you will need to specify Windows Server 2008 R2 (64 bit) as the operating system. You will also need to create a hard drive that is at least 160Gb. Otherwise I selected the defaults (except for the RAM).
As you can see in the screen-shot gallery below there was not a whole lot of user interaction required during installation and there were a few reboots: